The difference between the total reserves that a bank holds and the amount that is required by law are called
A)excess reserves.
B)nonborrowed reserves.
C)borrowed reserves.
D)actual reserves.

Question

Quizplus · Accepted Answer

Excess reserves are the reserves that a bank holds above the minimum amount required by law (required reserves). Banks can use excess reserves to make loans or invest in securities.

The Difference Between the Total Reserves That a Bank Holds